Find out how GST impacts your Web design & web development business.

1. ▪ —-
What is GST
F
• The Goods and Services Tax (GST) is a landmark indirect tax reform which will change the
way the businesses operate
• The Goods & Services Tax is a comprehensive, multi-stage, destination-based tax that will
be levied on every value addition
• This means that only value additions will be taxed and the burden of tax is to be borne by
the final consumer
• The design of the GST is fairly complex, with a dual administration arrangement that
involves the tax authorities of both the Central and the State Governments separately taxing
a single transaction
• The levy of tax in the GST regime is being shifted to the word “Supply”

2. ▪
Indirect Tax : A Quick Comparison
International
Perspective
on all suppliessingle tax
with restricted
credits
automated
process
Indian Scenario
Prior to GST
multiple taxes
on specifically
defined services
with breakages
in credits chain
manual /
isolated
process
Scenario In GST
Regime
dual tax on all supplies
with unrestricted
but fragmented
credit
automated
process

3. IGST instead of CGST and SGST for inter-state transactions (destination-based)
Important Taxes Subsumed
CGST
Countervail
ing Duties
Additional
Excise
Duties
Service
Tax
Central
Excise
Duty
Cesses
SGST
Luxury Tax
Purchase
Tax
Octroi and
Entry Tax
Entertainm
ent
Duty
Value Added
Tax /CST
UT-GST

4. Dual GST : Basics
Situation Supply Tax
Location of Supplier and Place of Supply in
same State
Intra-State CGST + SGST
Location of Supplier and Place of Supply in
same State
Inter-State IGST
Import of Goods or Services (different
countries)
Inter-State IGST
Export of Goods or Services (different
countries)
Inter-State Zero-Rated

5. Dual GST : Features
Two Important Determinants
• Place from Where the Supply is made [Service Provider / Warehouse Centric] –no convergence
• Place to which the Supply is made [Service Recipient / Buyer Centric] – convergence
Single Locational Establishments vs. Multi Locational Establishments

6. Single Location Service Establishment
Service Tax Regime Dual GST Regime
Service
Provider
(India)
Service
Provider
(India)
Mumbai
Mumbai
Delhi
Chennai

7. Multi Locational Service Establishment
Service Tax Regime Dual GST Regime
Service
Provider
(India)
Service
Provider
(India)
Delhi
Mumbai
Delhi
Chennai
Mumbai
Chennai

8. Important Concepts
GST applicable on all supplies including deemed supplies:
• Free Supplies to related persons
• Inter-state branch transfers
• Supplies of goods by Principal to Agents
Reverse Charge Mechanism to be applicable on:
• Import of Services (include free / personal imports)
• Notified Goods or Services
• All Procurement from unregistered vendors
Value is generally the transaction value:
• Arms’ Length Pricing in case of Related Parties
• Invoice Value accepted if recipient eligible for full input tax credit
• Pre-Supply Discounts can be reduced from value, Post-Supply Discounts can be reduced only if
the same relate to agreement prior to supply
Exemptions:
• Most exemptions to be phased out
• Threshold of Rs. 20 lakhs
• Optional Composition Scheme up to Rs. 50 lakhs (not for service providers)

9. Important Concepts
Rate of Tax
• 0 – 5 – 12 – 18 – 28 + CESS
• Time of Supply to be earliest of multiple ‘touch points’
• Advances for Goods also becomes liable for tax

10. Domestic & International Place of Supply Rule
 POS Rule for Services
 General Rule - Destinational Principal –
Classification as B2B vs.B2C Important
 Exception – Source and Hybrid Principle
 Impact on Claim of credit in B2B cases
Domestic Place of Supply Rules
▪ Destination Principle (Subject to Various
Exception)
▪ Import – Liable under RCM
▪ Export – Zero Rated subject to Various
Conditions
International Place of Supply Rules

11. Input Credit-Essential Conditions
You Should Receive Vendor Should Credit should Not be
Services
Tax invoice
Pay the Vendor within
180 days
Have paid the Tax
Have uploaded the Tax to
the customers account
Blocked
Subject to apportionment

12. Import of Services Under GST
▪ The term “Import of Services” has been defined under section 2(11) of Integrated Goods and
Services Tax (IGST) Act, 2017, which means:
▪ the supply of any service, where –
• The supplier of service is located outside India
• The recipient of service is located in India and
• The place of supply of service is in India

13. Import of Services Under GST
Import of Services
B2C Transactions
* Service Provided to
a “non-taxable online
recipient" in taxable
territory in India.
Supplier is required
to registered in
India and pay GST
Other Cases (for
commerce, industry or
any other business or
profession)
No implication.
B2B Transactions
Service recipient
will pay GST
under RCM

14. ▪ services provided by ResellerClub will fall under “Online information and database access or retrieval services
(OIDAR)”. The definition of OIDAR is defined under section 2(17) of IGST Act:
▪ “online information and database access or retrieval services” means services whose delivery is mediated by
information technology over internet or an electronic network and the nature of which renders their supply
essentially automated and involving minimal human intervention and impossible to ensure in absence of
information technology and includes services such as, -
▪ Advertising on the Internet;
▪ Providing cloud service;
▪ Provision of e-books, movies, music, software and other intangibles through telecommunication networks or
internet;
▪ Providing data or information, retrieval or otherwise, to any person in electronic form through a computer network;
▪ Online supplies of digital content (movies, television shows, music and the like);
▪ Digital data storage; and
▪ Online gaming.
▪ Therefore, the said OIDAR services will fall under Section 13(12) of the IGST Act which reads as follows:
▪ The place of supply of online information and database access or retrieval services shall be the location of the
recipient of services.
online information and database access or retrieval services

15. f
Compliances – a Quick Snapshot
Registration Invoices Returns On behalf
• Multiple Registration
as supplier
• All activities through
common portal
• Definition of
Authorized signatory
• Mentioning of
Registration Details
• Documents to be
submitted
• Transition Strategy
• Numbering Format
• Generation and
cancellation related
issues
• Digital Signature
• SAC Mentioning
• Documents to be
submitted
• Debit/Credit note-
Scope and linkage
• Multiple uploading
• Distinction between
B2B and B2Cl
• No Revision
permissible
• Annual Return with
Reconciliation and
Audit Report
• Cross linkage of Data
and Audit Trail
• Tax Deduction at
Source
• Tax collection at
Source
• Aggregator
• Reverse charge
Mechanism
• Agent dealing on
behalf of Principal

16. Thank You!